Study: Fraudsters Focusing on Alternative Means of Payments
A quantitative study conducted by Javelin in July 2011 with the help of merchants accepting alternative means of payments shows that fraud figures regarding these methods have increased compared to 2010: 27% of the registered fraud cases (vs. 20% the year before).
Meanwhile, fewer cases of fraud impacting traditional means of payments have been noted: 18% of listed cases relate to debit cards (compared to 30% in 2010). This decrease also concerns cheque and credit card transactions.
These incidents seem to be affecting small merchants more than others: 31% of all listed fraud cases, as opposed to 12% for mid-sized merchants and 15% for large retailers.
Javelin’s report insists that PayPal has impacted small merchants’
acceptance of alternative means of payments and has been providing for
their increasing acceptance since 2011.
Small merchants seem naturally more affected as they propose these
payment options and because they cannot effort expensive fraud
The development of alternative means of payments is backed by the
increasing use of new distribution channels; fraud prevention solutions
are step by step being implemented.